U.S. seeks WTO settlement on Indonesia’s ag import rules

Friday, March 15, 2013

In one of his last acts before departing the Office of the U.S. Trade Representative this Friday, Ron Kirk said the United States has requested the World Trade Organization to establish a dispute settlement panel to examine Indonesia’s trade measures applied to horticultural products, animals, and animal products.
Indonesia has “created a complex web” of import licensing requirements that, along with quotas, have restricted U.S. exports. USTR said these measures appear to be designed to protect Indonesia’s domestic agriculture industry.
“Indonesia’s import licensing requirements and quotas adversely affect a wide range of American agricultural exports and severely reduce Indonesian consumers’ access to high-quality American products,” Kirk, said in a statement.
In accordance with the WTO Dispute Settlement Understanding, the United States requested WTO consultations with Indonesia on Jan. 10. The United States and Indonesia held consultations on Feb. 21-22, but they did not resolve the U.S. government’s concerns.
In late 2011, Indonesia passed regulations establishing import licensing requirements for horticultural products. Those regulations were revised in September 2012 to include “even more onerous requirements” for horticultural imports, USTR said. The affected products include, but are not limited to, fruits, vegetables, flowers, dried fruits and vegetables and juices.
Indonesia has long maintained similar import licensing and quota regimes for animals, beef and other animal product imports. In December 2012, Indonesia announced drastic reductions in quotas for beef and other animal product imports, further restricting access to the Indonesian market.